What is multi level marketing?

internet ANSWER TO THE ABOVE QUESTION Multi-level marketing (MLM) is a marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of others they recruit, creating a downline of distributors and a hierarchy of multiple levels of compensation.[1] Other terms for MLM include network marketing,[2][3][4] and referral marketing,[5] not to be confused with the actual referral marketing. Most commonly, the salespeople are expected to sell products directly to consumers by means of relationship referrals and word of mouth marketing.[6] As a result, some people conflate MLM with direct selling, although MLM is only one type of direct selling.[7][2] MLM companies have been a frequent subject of criticism as well as the target of lawsuits. Criticism has focused on their similarity to illegal pyramid schemes,[8] price-fixing of products, high initial start-up costs, emphasis on recruitment of lower-tiered salespeople over actual sales, encouraging if not requiring salespeople to purchase and use the company's products, potential exploitation of personal relationships which are used as new sales and recruiting targets, complex and sometimes exaggerated compensation schemes, and cult-like techniques which some groups use to enhance their members' enthusiasm and devotion. Not all MLM companies operate the same way, and MLM groups have persistently denied that their techniques are anything but legitimate business practices.[citation needed] The opposite of MLM is single-level marketing. In single-level marketing, the salesperson is rewarded for selling the product, but not for recruiting or sponsoring other salespeople.[1] Read more: http://www.answers.com/topic/multi-level-marketing#ixzz1KTFBrg5L